Chase charges an overdraft fee the moment your account goes negative
When you spend more money than you have in your Chase checking account, Chase charges you an overdraft fee — currently $35 per transaction that pushes your account below zero. This fee hits your account immediately, which makes the negative balance even larger. If multiple transactions post on the same day, you can be charged multiple overdraft fees.
Chase does not prevent the transaction from going through. Instead, they let it process, then charge you the fee after the fact. This means a single purchase can cost you $35 more than the item itself.
The overdraft fee applies whether you overdraw by $1 or $100. Chase does not scale the fee based on how far negative you go.
Key Takeaways
- Chase charges $35 per transaction that overdraws your account, and multiple overdrafts on the same day result in multiple fees.
- You can turn off overdraft protection to stop transactions from going through rather than paying fees, though this may cause checks or automatic payments to bounce.
- Chase allows you one overdraft fee reversal per year if you ask, but only if you have a history of keeping your account in good standing.
- If your account stays negative for more than a few days, Chase may close it and report you to ChexSystems, making it harder to open accounts elsewhere.
- Overdraft fees compound quickly — a $50 overdraft can become $85 or more after fees, then grow further if you cannot deposit money to cover it.
How overdraft fees stack up when multiple transactions post the same day
Chase processes transactions in a specific order each day, which determines how many overdraft fees you pay. Typically, larger transactions post before smaller ones, meaning a big purchase can trigger an overdraft fee, and then smaller purchases throughout the day each trigger their own fee.
If you have $100 in your account and make five $30 purchases, you could be charged $35 for each transaction that goes negative — totaling $175 in fees on top of the $150 you spent. The fees themselves make the problem worse because they deepen your negative balance.
Chase's order of posting is not random, but it is also not always the order in which you made the purchases. Debit card transactions, ACH transfers, and checks all post at different times and in different sequences. This means you cannot always predict which transaction will trigger the first overdraft fee.
Turning off overdraft protection to prevent fees
Chase offers an overdraft protection setting that you can disable. When overdraft protection is off, transactions that would overdraw your account are simply declined — they do not go through, and you are not charged a fee. Your card will be rejected at the register, or the payment will fail.
The downside is that checks and automatic bill payments may bounce if you do not have enough money. A bounced check can trigger a non-sufficient funds (NSF) fee from the merchant or your biller, which is separate from Chase's overdraft fee. Some billers also charge you for a failed automatic payment.
To turn off overdraft protection, log into your Chase account online or call Chase customer service at the number on the back of your card. You can disable it for debit card transactions while keeping it on for checks and ACH transfers, or turn it off entirely.
Requesting a one-time overdraft fee reversal
Chase allows you to request a reversal of one overdraft fee per year if you have maintained a good account history. "Good history" typically means you have not had repeated overdrafts or other account problems in the past year. The reversal is not automatic — you have to ask for it.
Call Chase customer service or visit a branch in person and explain that you overdrew your account and would like to request a fee reversal. Be direct: "I would like to request a one-time overdraft fee reversal." Chase is more likely to grant the reversal if this is your first overdraft in a long time.
Chase does not may provide the reversal. If you have had multiple overdrafts recently or other account issues, they may deny the request. Even if denied, asking costs nothing — the worst outcome is that they say no and you keep the fee.
What happens if your account stays negative for days or weeks
If you do not deposit money to bring your account back to zero within a few days, Chase may charge you an additional fee called a sustained overdraft fee or extended overdraft fee. This fee applies if your account remains negative for five or more consecutive business days. Chase charges $35 for this fee as well.
If your account stays negative for 30 days or longer, Chase will likely close your account. Once closed, Chase reports the account to ChexSystems, a banking history database. This report makes it difficult to open a checking account at other banks for up to five years. Many banks check ChexSystems before opening a new account and will deny you if you appear on it.
Closing your account also means any pending transactions or automatic payments tied to that account will fail. If you have direct deposit set up, you will need to update your employer with a new account number.
How overdraft fees interact with other Chase fees
Overdraft fees are separate from other fees Chase charges. If your account goes negative and you also have a monthly maintenance fee, both charges apply. If you have a savings account linked to your checking account and Chase tries to transfer money to cover the overdraft, they may charge a transfer fee on top of everything else.
Some Chase checking account plans include overdraft protection through a linked savings account, meaning Chase automatically transfers money from savings to cover overdrafts. This avoids the overdraft fee but may trigger a transfer fee instead, which is usually smaller ($0 to $10 depending on your account type).
If you have a Chase credit card and your checking account goes negative, the overdraft does not affect your credit score directly. However, if Chase closes your account due to sustained overdraft, that closure may appear on your banking history and make it harder to open new accounts.
Steps to take if you cannot cover an overdraft immediately
If you overdraw your account and do not have money to deposit right away, contact Chase as soon as you realize it. Explain your situation and ask whether they can temporarily waive or reduce the overdraft fee. Chase is more likely to help if you contact them before the account has been negative for several days.
Deposit money as quickly as you can — even a partial deposit reduces the negative balance and may prevent additional sustained overdraft fees from accruing. If you receive a paycheck via direct deposit, that money will post to your account automatically and bring the balance positive.
If your account is closed due to overdraft, you can still deposit money to pay off the negative balance. Chase will hold the account open long enough for you to settle it. After you pay it off, you can apply to open a new Chase checking account, though approval depends on your ChexSystems report and recent banking history.
Frequently Asked Questions
Can Chase charge me an overdraft fee if I have overdraft protection turned on?
Yes. Overdraft protection means Chase will let the transaction go through and charge you a fee instead of declining it. Turning off overdraft protection prevents the fee by declining the transaction instead. The terms are confusing — "protection" actually means protection for the merchant, not for you.
What is the difference between an overdraft fee and an NSF fee?
An overdraft fee is charged by Chase when they allow a transaction to go through even though you do not have enough money. An NSF (non-sufficient funds) fee is charged by the merchant or biller when a transaction bounces because you do not have enough money. You can get both fees on the same transaction if the merchant charges you for the bounce.
If I pay off my overdraft, will Chase reopen my account?
Paying off the negative balance does not automatically reopen a closed account. You will need to apply for a new checking account. Chase will review your ChexSystems report and recent banking history before approving you. If the account was closed very recently, approval may take longer.
Does an overdraft show up on my credit report?
An overdraft itself does not appear on your credit report unless Chase sends the debt to a collection agency, which is rare for small overdraft amounts. However, a closed account due to overdraft may appear on your banking history through ChexSystems, which is separate from your credit report.
Can I get my overdraft fee back if I dispute it?
Disputing an overdraft fee through Chase's dispute process is unlikely to succeed because the fee is legitimate — you did overdraw your account. Your best option is to request a one-time reversal by calling customer service and explaining your situation. If denied, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), though this does not may provide a refund.